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Scientists in Melbourne, Australia, used a ventilator and pump to keep the animal lungs alive and "breathing" while human blood flowed in them.
Experts estimated the work could lead to the first animal-human transplants within five years.
Dr Glenn Westall, who helped conduct the experiment, said: “The blood went into the lungs without oxygen and came out with oxygen, which is the exact function of the lungs.
"It showed that these lungs were working perfectly well and doing as we were expecting them to do.
“This is a significant advance compared to experiments that have bee