Hadith Qudsi is a Hadith spoken by the Prophet (صلى الله عليه وسلم) while being attributed to Allah Almighty, such as:
عن أبي هريرة عن النبي صلى الله عليه وسلم قال: قال الله عزوجل: سبقت رحمتى غضبي
Hadhrat Abu Hurairah (رضی اللہ عنہ) narrates that the Prophet (صلى الله عليه وسلم) stated: Allah Almighty says: His mercy dominates His anger. (Sahih Muslim)
The narration in this Hadith was attributed to Allah (while it was spoken by the Prophet); therefore it is called Hadith Qudsi.
Both the words and meanings of the Holy Quran are from Allah Almighty, revealed through the angel Jibreel (عليه السلام). In Hadith Qudsi, the words are from the Prophet (صلى الله عليه وسلم) but their meanings are put into the hearts of the Prophet (صلى الله عليه وسلم) from Allah, and the Prophet (صلى الله عليه وسلم) relates it imputing to Allah.
Allah (Subhana Wa Ta’ala) knows Best
Darul Uloom Deoband