The device oxygenates blood before it goes back into the body and could replace lung transplants if development is successful.
The device mimics the function of a lung - by getting oxygen into and carbon dioxide out of the blood stream.
Researchers claim that in the long term the device could offer an alternative to lung transplants, giving hope to those who suffer from conditions such as emphysema and cystic fibrosis.
Professor Rhodri Williams, who came up with the idea after his son died of Cystic Fibrosis, is leading the project on behalf of Swansea University in the UK.
However, it may be many years before the device is available.
