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A fast three-dimensional (3-D) finite-difference time-domain (FD-TD) scheme of high spatial resolution is presented. Increased resolution is obtained by combining the standard FD-TD algorithm with macromodels of highly refined volumes created by a model-order reduction technique. New updated equations for macromodels are derived and the numerical costs involved in using 3-D macromodels are estimated. Excellent performance has been observed during numerical tests for high-refinement factors.