Is it permissible to say: Allah Almighty said: "Prayer is better than sleep"?

It is not permissible to say, "Allah Almighty said: 'Prayer is better than sleep'," because that gives the impression that it is from the words of Allah Almighty, which it is not. It is neither Quran nor a Hadith Qudsi. Rather, it is a Prophetic Hadith. The Hadith Qudsi has both its wording and meaning from Allah, whereas the Prophetic Hadith has its meaning from Allah and its wording from the Messenger (peace be upon him). It suffices when citing this phrase to attribute it to the Prophet (peace be upon him) as narrated in the Hadith of Abu Mahdhurah, where the Prophet (peace be upon him) commanded its recitation in the adhan for the Fajr prayer.