Using 7-Zip, extract the contents of the ISO file to a folder on your computer. This will give you access to the game's files.
Using the PKG Repack Tool, open the PKG file you just created. Select the "Repack" option and choose a destination folder for the repacked PKG file. convert ps3 game iso to pkg repack
Transfer the repacked PKG file to your PS3 using a USB drive or FTP. Install the PKG file on your PS3 and enjoy your game! Using 7-Zip, extract the contents of the ISO