A system and method of packaging a bone allograft for use in a future medical procedure in which the bone allograft is stored in a saturated saline solution in an airtight container. The saline solution keeps the allograft hydrated and may be saturated with a combination of calcium, phosphate, or magnesium to inhibit mineral leaching out of the allograft during storage. The container may be deformable to conform to the shape of the allograft material as the container is "shrink-fitted" to the allograft. Optionally, the bone allograft may also be freeze-dried prior to placement in the container.