During the era of Rasulullah (sallallahu ‘alaihi wasallam), there was a need to extend Musjid-e-Nabawi (sallallahu ‘alaihi wasallam). For this purpose, Rasulullah (sallallahu ‘alaihi wasallam) required a certain plot of land that was adjacent to the musjid. Hence, Rasulullah (sallallahu ‘alaihi wasallam) approached an Ansaari Sahaabi (radhiyallahu ‘anhu) who was the owner of this land and encouraged him to give it in the path of Allah for the musjid saying, “If you give this land for the musjid, you will receive a palace in Jannah.” However, the Ansaari Sahaabi (radhiyallahu ‘anhu) did not wish to donate his land as he needed the land.
Hazrat ‘Uthmaan (radhiyallahu ‘anhu) then came to the Ansaari Sahaabai (radhiyallahu ‘anhu) and offered to purchase the plot of land from him for ten thousand dirhams. The Ansaari Sahaabi (radhiyallahu ‘anhu) accepted the offer and Hazrat ‘Uthmaan (radhiyallahu ‘anhu) purchased the land. Thereafter, Hazrat ‘Uthmaan (radhiyallahu ‘anhu) came to Rasulullah (Sallallahu ‘alaihi wasallam) and said, “O Rasul of Allah (Sallallahu ‘alaihi wasallam)! Accept from me the land that I purchased from the Ansaari Sahaabi (radhiyallahu ‘anhu), in exchange of a palace in Jannah! Indeed I purchased the plot of land for ten thousand dirhams.” Rasulullah (Sallallahu ‘alaihi wasallam) accepted the land from Hazrat ‘Uthmaan (radhiyallahu ‘anhu) in exchange for a palace in Jannah.
Thereafter, Rasulullah (Sallallahu ‘alaihi wasallam) commenced the foundation-laying by placing the first brick. He then called Hazrat Abu Bakr (radhiyallahu ‘anhu) to lay the second brick, after which he called Hazrat ‘Umar (radhiyallahu ‘anhu) to lay the third brick. Hazrat ‘Uthmaan (radhiyallahu ‘anhu) was then asked to place the fourth brick. Finally, Rasulullah (Sallallahu ‘alaihi wasallam) instructed all the other Sahaabah (radhiyallahu ‘anhum) to lay the bricks and commence the extension.
(Majma’uz Zawaa’id #14524)
Note: There are different narrations regarding the amount that Hazrat ‘Uthmaan (radhiyallahu ‘anhu) contributed towards the extension of the musjid. In the narration of Sunan Daaraqutni #4436, it is mentioned that he contributed twenty or twenty-five thousand dirhams. However, ten thousand dirhams has been mentioned in the narration above. According to ‘Allaamah Samhoodi (rahimahullah), both narrations refer to the same incident of extending the musjid. This was the second time that Musjid-e-Nabawi (Sallallahu ‘alaihi wasallam) underwent construction. Hence, it is possible that Hazrat ‘Uthmaan (radhiyallahu ‘anhu) initially paid ten thousand dirhams to purchase the land, and thereafter spent more wealth which equaled an additional ten or fifteen thousand dirhams for the construction.