´Narrated Abu Shuraih Al-Ka'bi:` that the Messenger of Allah (ﷺ) said: "Indeed Allah made Makkah sacred, it was not made sacred by the people. Whoever believes in Allah, and the Last Day, then let them not shed blood in it, nor cut down any of its trees. If one tries to make an excuse by saying: 'It was made lawful for the Messenger of Allah (ﷺ)' then indeed Allah made it lawful for me but He did not make it lawful for the people, and it was only made lawful for me for an hour of a day. Then it is returned to being sacred until the Day of Judgement. Then, to you people of Khuza'ah who killed this man from Hudhail: I am his 'Aqil, so whomever (one of his relatives) is killed after today, then his people have two options; either they have him killed, or they take the blood-money from him.'"
Hadith Referenceسنن ترمذي / كتاب الديات عن رسول الله صلى الله عليه وسلم / 1406
Narrated Abu Shurayb al-Kabi: The Prophet ﷺ said: Then you, Khuzaah, have killed this man of Hudhayl, but I will pay his blood-wit. After these words of mine if a man of anyone is killed, his people will have a choice to accept blood-wit or to kill him.
Shaykh Umar Farooq Saeedi
Benefits and Issues: There is also a third option, which is to pardon, while some jurists (fuqaha) have also described accepting blood money (diyah) as a form of pardon.
Source: Sunan Abu Dawood – Commentary by Shaykh Umar Farooq Saeedi, Page: 4504
Abil Shuraih Al-Khaza'i (RAA) narrated that The Messenger of Allah (ﷺ) said: “If the relative of one of you is killed after my speech, his family has one of two choices: ‘Either they take his Diyah or kill the killer.” Related by Abu Dawud and An-Nasa’i. A similar narration is transmitted by Al-Bukhari and Muslim on the authority of Abu Hurairah.
Explanation: Hadith Narrator: «حضرت ابوشریح خزاعی رضی اللہ عنہ » ‘Amr ibn Khuwailid, and according to some, Khuwailid ibn ‘Amr al-Ka‘bi al-‘Adawi al-Khuza‘i. He accepted Islam before the Conquest of Makkah. He passed away in Madinah in the year 68 AH.
Source: Bulugh al-Maram: Commentary by Safiur Rahman Mubarakpuri, Page: 1008