Questions: What is the ruling with regard to recycling newspapers or pamphlets that contain the name of Almighty Allah or Nabi Sallallahu Alaihi Wasallam?
Answer: The name of Almighty Allah, Nabi Sallallahu Alaihi Wasallam, the Ambiya, the angles, etc., are sanctified and should be respected. With that in mind, literature that contains this should also be respected.
If the literature is no longer being used, it should be wrapped up in a cloth and buried in an isolated place.
Alternatively, it should be placed in flowing water like a river or lake.
Regarding recycling, the paper is generally handled by Non-Muslims, thrown around, trampled upon, and thorn into pieces before being recycled. Therefore it is not permissible to recycle Islamic literature that contains the name of Almighty Allah.
Notwithstanding that, if it’s not possible to bury the Islamic literature and the only option is to recycle, then the name of Almighty Allah, Nabi Sallallahu Alaihi Wasallam, the Ambiya, the angles, verses of the Noble Quraan, narrations of Ahadith, etc. should be erased or written over with a pen in such a way that they are no longer visible. If this is done and the paper is handled respectably, then it would be permissible for it to be recycled.
Similarly, if one resorts to burning the literature, this should be done after the name of Almighty Allah, Nabi Sallallahu Alaihi Wasallam, the Ambiya, the angles, etc., is erased or written over.
And Almighty Allah Knows Best
الكتب التي لا ينتفع بها يمحى عنها اسم الله وملائكته ورسله ويحرق الباقي ولا بأس بأن تلقى في ماء جار كما هي أو تدفن وهو أحسن
الدر المختار وحاشية ابن عابدين (رد المحتار) (6/ 422)