Sunan Abi Dawud Book 2, Hadith 101
Abu Salih narrated this tradition with a different chain of transmitters to the same effect as reported by Sulaiman b. Dawud. But this version has the word KHARAJA (he went out) instead of BARAZA (proceeded).
AbuSalih al-Ghifari reported: Ali (once) passed by Babylon during his travels. The mu'adhdhin (the person who calls for prayer) came to him to call for the afternoon prayer. When he passed by that place, he commanded to announce for the prayer. After finishing the prayer he said: My affectionate friend (i.e. the Prophet) prohibited me to say prayer in the graveyard. He also forbade me to offer prayer in Babylon because it is accursed.
and the narrator Musa said: As far as Amr thinks, the Prophet (ﷺ) said: The whole earth is a place of prayer except public baths and graveyards.