A new method for temperature compensation of fiber Bragg grating (FBG) using hi-metal is proposed and experimentally demonstrated. Bi-metal bends toward the metal of low temperature expansion coefficient as the temperature increases, and this property is utilized to cancel the thermo-optic effect of the fiber. The optimum thickness of the high coefficient metal was empirically found by the trial-and-error method. The temperature sensitivities were 8.1 pm/$^{circ}C$ and -0.018 pm/$^{circ}C$ for the uncompensated and compensated FBGs, respectively, which indicates a reduction to a mere 0.22 % of the original sensitivity. No appreciable change in the spectral shape was observed. The packaging technique described in this paper is simple and compact, and it can be used for FBGs in WDM and DWDM communication systems that have stringent requirements on the temperature stability of the components.