Hadith Qudsi (or Sacred Hadith) is a sub-category of hadith, which are sayings of Muhammad. Muslims regard the Hadith Qudsi as the words of God (Arabic: Allah), repeated by Muhammad and recorded on the condition of an isnad. According to as-Sayyid ash-Sharif al-Jurjani, the Hadith Qudsi differ from the Qur’an in that the former were revealed in a dream or through revelation and are “expressed in Muhammad’s words”, whereas the latter are the “direct words of God”.
An example of a Hadith Qudsi is the hadith of Abu Hurairah who said that Muhammad said:
“When God decreed the Creation He pledged Himself by writing in His book which is laid down with Him: My mercy prevails over My wrath.”