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The toothpaste-like substance forms a biodegradeable scaffold over which the body's own bone grows.
Its makers, from Nottingham University, said it could help remove the need for painful bone grafts in many cases.
They are working to start clinical trials in the UK, and expect it to be used in the US within 18 months.
Its advantage over traditional bone cements is in the hardening process.
While conventional cements give off heat as they harden, killing surrounding cells, and making them unusable in some parts of the body, this polymer does not.
The material has the texture of toothpaste at room temperature, and when it rises to body temperature, this is enough to trigger the hardening reaction.