It was narrated that 'Amr bin Dinar said:
I said to Tawus:"O Abu 'Abdur-Rahman, why do you not give up this Mukhabarah because they claim that the Messenger of Allah (ﷺ) forbade it." He said: "O 'Amr, I help them by taking their land and cultivating it, and giving them something in return, and Mu`adh bin Jabal allowed people here to do that. The most knowledgeable of them - meaning Ibn`Abbas - told me that the Messenger of Allah (ﷺ) did not forbid it, rather he said: 'For one you to give (land) to his brother is better than if he were to take a set amount in rent for it.'"
English reference: Vol. 3, Book 16, Hadith 2462
Arabic reference: Book 16, Hadith 2556