A new fast algebraic method for obtaining an $mathcal{H}^2$-approximation of a matrix from its entries is presented. The main idea behind the method is based on the nested representation and the maximum-volume principle to select submatrices in low-r
ank matrices. A special iterative approach for the computation of so-called representing sets is established. The main advantage of the method is that it uses only the hierarchical partitioning of the matrix and does not require special proxy surfaces to be selected in advance. The numerical experiments for the electrostatic problem and for the boundary integral operator confirm the effectiveness and robustness of the approach. The complexity is linear in the matrix size and polynomial in the ranks. The algorithm is implemented as an open-source Python package that is available online.
