Caution: Translations of Quran and Ḥadīth may lead to possible misapplications and misinterpretations. This site is intended for students of sacred knowledge that are proficient in comprehending classical Arabic and have a strong foundation in Islamic sciences. Also note that religious injunctions rely on several aspects beyond what one may glean through reading individual aḥādīth.
Qurʾān Bukhārī Muslim Nasāʾī Abū Dāwūd Tirmidhī Ibn Mājah Mālik Aḥmad Dārimī Ḥākim Ibn Ḥibbān Ṭabarānī Nasāʾī's Kubrá Bayhaqī al-Luʾluʾ wa-al-Marjān Ibn Rajab's Fifty Riyāḍ al-Ṣāliḥīn Aḥmad's Zuhd Suyūṭī
suyuti:4-2703b – ʿAli > Idhā Qatal al-ʿAbd al-Ḥur Dufiʿ > Awliyāʾ al-Maqtūl Faʾin Shāʾūā Qatalūā
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السيوطي:٤-٢٧٠٣b –

"عَنْ عَلِىٍّ قَالَ: إِذَا قَتَلَ الْعَبْدُ الْحُرَّ دُفِعَ إِلَى أَولِيَاءِ الْمَقْتُولِ، فَإِنْ شَاءُوا قَتَلُوا وَإنْ شَاءُوا اسْتَخْصوْا".  

See similar narrations below:

Collected by Bayhaqī
bayhaqi:15961 – Abū ʿAbdullāh al-Ḥāfiẓ > Abū al-Walīd > al-Ḥasan b. Sufyān > Abū Bakr > Ḥātim b. Ismāʿīl > Jaʿfar b. Muḥammad from his father > ʿAlī

[Machine] If a free person is killed, the matter is referred to the relatives of the murdered person. If they wish, they can kill the murderer, and if they wish, they can accept blood money. The sheikh said, if they wish, they can accept blood money, and they wanted to sell it in the blood money of the murdered person. And Allah knows best.  

البيهقي:١٥٩٦١ – أَخْبَرَنَا أَبُو عَبْدِ اللهِ الْحَافِظُ أنبأ أَبُو الْوَلِيدِ ثنا الْحَسَنُ بْنُ سُفْيَانَ ثنا أَبُو بَكْرٍ ثنا حَاتِمُ بْنُ إِسْمَاعِيلَ عَنْ جَعْفَرِ بْنِ مُحَمَّدٍ عَنْ أَبِيهِ عَنْ عَلِيٍّ ؓ قَالَ

إِذَا قَتَلَ الْعَبْدُ الْحُرَّ رُفِعَ إِلَى أَوْلِيَاءِ الْمَقْتُولِ فَإِنْ شَاءُوا قَتَلُوا وَإِنْ شَاءُوا اسْتَحْيَوْهُ قَالَ الشَّيْخُ إِنْ شَاءُوا اسْتِحْيَاءَهُ وَأَرَادُوا الدِّيَةَ بِيعَ فِي دِيَةِ الْمَقْتُولِ وَاللهُ أَعْلَمُ