An immuno-compatible hydrogel system is provided that is resistant to proteinbinding. The hydrogel system isprepared by contacting a hydrogel solution with a cross-linking agent to forma gel, exposing the gel to an aqueous solution comprisinga first polyelectrolyte to form a polyelectrolyte-coated hydrogel, exposingthe polyelectrolyte-coated hydrogel to a secondpolyelectrolyte to form a crosslinked matrix and exposing the matrix toconditions which eliminates, or at least reduces, proteinbinding sites on the matrix.