'Aayesh Radiyallahu 'Anha narrates:
"After the demise of Rasulullah Sallallahu 'Alayhi Wasallam, a disagreement arose (between the Sahaabah) regarding the burial. (Some perferred the Masjidun Nabawi, Some because of Sayyidina Rasulullah Sallallahu 'Alayhi Wasallam's attachment to the Sahaabah, said the Baqi. Some said he should be buried next to his great grandfather, Ebrahim, 'Alayhi Salaam. Some said at his birth place in Makkah Mukarramah. etc.) Abubakr Radiyallahu 'Anhu thereupon said: 'I heard something from Rasulullah Sallallahu 'Alayhi Wasallam which I did not forget (and remember very well). The death of the ambiyaa occurs in the very place where their burial is desired. Hence bury Rasulullah Sallallahu 'Alayhi Wasallam at the place of his deathbed (where his death occurred)'"
English reference: Book 53, Hadith 372
Arabic reference: Book 54, Hadith 389