Currently, there are three types of devices for a bioartificial pancreas; microencapsulation, an extravascular diffusion chamber, and an intravascular diffusion chamber. The purpose of the present study was to provide a new extracellular matrix hydrogel for the devices of extra- and intravascular diffusion chamber types. As the sol-gel transition of this hydrogel is reversible, refilling of islets in vivo will be possible without a severe traumatic procedure. The hydrogel was produced from a polyacrylamide derivative carrying thiol groups synthesized by radical copolymerization of acrylamide and N,N'-bis-acrylcystamine, followed by reduction of the disulfide bonds in the copolymer. This water-soluble copolymer was used to entrap hamster islets by re-formation of disulfide bonds on the copolymer to produce a hydrogel. The formed hydrogel was easily reliquefied by reduction of the disulfide crosslinks to thiols. Insulin release from the islet-entrapped hydrogel continued for more than 1 month when examined in vitro. A static glucose stimulation test for the entrapped islets exhibited an increased insulin release.