Muwatta Imam Malik Book of Setting Free and Wala', Hadith 11

Malik related to me that he had heard that Fadala ibn Ubayd al- Ansari who was one of the companions of the Messenger of Allah ﷺ was asked whether it was permissible for a man who had to free a slave to free an illegitimate child. He said, "Yes, That will give satisfaction for him."

وَحَدَّثَنِي مَالِكٌ، أَنَّهُ بَلَغَهُ عَنْ فَضَالَةَ بْنِ عُبَيْدٍ الأَنْصَارِيِّ، وَكَانَ، مِنْ أَصْحَابِ رَسُولِ اللَّهِ ﷺ أَنَّهُ سُئِلَ عَنِ الرَّجُلِ تَكُونُ عَلَيْهِ رَقَبَةٌ هَلْ يَجُوزُ لَهُ أَنْ يُعْتِقَ وَلَدَ زِنًا قَالَ نَعَمْ ذَلِكَ يُجْزِئُ عَنْهُ .