Biodiesel (methyl esters of long-chain fatty acids) can be produced by methanolysis of vegetable oils using lipase as a biocatalyst. However, the lipase, such as immobilized Candida antarctica lipase B (Novozym 435), is poisoned as a result of the contact with insoluble methanol, reducing the lipase activity. To minimize the problem, a salt-solution-based controlled release system for methanol is developed. The developed method can easily minimize the problem by dissolving methanol in the salt solution and keeping an acceptable methanol concentration in vegetable oil, thereby increasing the lipase activity. The results of methanolysis of palm oil in the salt-solution-based methanol release system are compared to those in a salt-solution-free system, where methanol is added by the traditional method of three successive additions of methanol. The maximum biodiesel yields in both systems are the same (97%), but methanolysis in the developed method progresses 4-fold faster than that in the traditional method. It is found that a LiCl-saturated solution stabilizes Novozym 435 against heat-induced inactivation. The results suggest that the salt-solution-based methanol release system can be an acceptable substitution for the traditional method and provides an efficient method for biodiesel production.