This is an apocryphal myth from the Infancy Gospel of Thomas. Again we see a conflict between history and Islam. chapter 2 of The Infancy Gospel of Thomas:
(3) And after he made clay, he molded twelve sparrows from it. And it was the Sabbath when he did these things. But there were also many other children playing with him. (4) Then, a certain Jew saw what Jesus was doing while playing on the Sabbath. Immediately, he departed and reported to Jesus' father, Joseph, "Look, your child is in the stream and he took clay and formed twelve birds and profaned the Sabbath?" (5) And Joseph went to the area and when he saw him, he shouted, "Why are you doing these things that are not permitted on the Sabbath?" (6) Jesus, however, clapped his hands and shouted to the sparrows, "Depart, fly, and remember me now that you are alive." And the sparrows departed shrieking. (7) When the Jews saw this, they were amazed. After they had gone away, they described to their leaders what they had seen Jesus do.
Here are some additional comments by Wilhelm Schneemelcher (New Testament Apocrypha, Vol. 1: Gospels and Related Writings, p. 442):
There is, however, a great difference between these miracles and those reported in the canonical Gospels. Here the extraneous material is simply imported into the story of Jesus, without the slightest attempt to make it fit, even remotely, the portrait of Christ. If the name of Jesus did not stand alongside the description 'child' or 'boy', one could not possibly hit upon the idea that these stories of the capricious divine boy were intended to supplement the tradition about him. Parallels from the legends of Krishna and Buddha, as well as all kinds of fables, can here be adduced in particular quantity. The cruder and more startling the miracle, the greater the pleasure the compiler finds in it, without the slightest scruple about the questionable nature of the material.
