Yahya b. Sa'id said that God’s messenger was sitting when a grave was being dug in Medina. A man looked down into the grave and said, "What a bad-resting-place for a believer!" God’s messenger thereupon retorted, "What a bad thing you have said!" and the man replied, "I did not mean that; I meant that being killed in God’s path ." God’s messenger said, "Nothing compares with being killed in God’s path. There is no other region in the earth in which I would prefer my grave to be," saying it three times. Malik transmitted it in mursal form.
Source: sunnah.com
Other translations
Arabic
لإرساله وَعَنْ يَحْيَى بْنِ سَعِيدٍ أَنَّ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ كَانَ جَالِسًا وَقَبْرٌ يُحْفَرُ بِالْمَدِينَةِ فَاطَّلَعَ رَجُلٌ فِي الْقَبْرِ فَقَالَ: بِئْسَ مَضْجَعِ الْمُؤْمِنِ فَقَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ: «بئس مَا قُلْتَ» قَالَ الرَّجُلُ إِنِّي لَمْ أُرِدْ هَذَا إِنَّمَا أَرَدْتُ الْقَتْلَ فِي سَبِيلِ اللَّهِ فَقَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ: «لَا مِثْلَ الْقَتْلِ فِي سَبِيلِ اللَّهِ مَا عَلَى الْأَرْضِ بُقْعَةٌ أَحَبُّ إِلَيَّ أَنْ يَكُونَ قَبْرِي بِهَا مِنْهَا» ثَلَاثَ مَرَّاتٍ. رَوَاهُ مَالِكٌ مُرْسَلًا
sunnah.com