The existence of precise temporal relations in sequences of spike intervals, referred to as 'spatiotemporal patterns', is suggested by brain theories that emphasize the role of temporal coding. Specific analytical methods able to assess the significance of such patterned activity are extremely important to establish its function for information processing in the brain. This study proposes a new method called 'pattern grouping algorithm' (PGA), designed to identify and evaluate the statistical significance of patterns which differ from each other by a defined and small jitter in spike timing of the order of few ms. The algorithm performs a pre-selection of template patterns with a fast computational approach, optimizes the jitter for each spike in the template and evaluates the statistical significance of the pattern group using three complementary statistical approaches. Simulated data sets characterized by various types of known non stationarities are used for validation of PGA and for comparison of its performance to other methods. Applications of PGA to experimental data sets of simultaneously recorded spike trains are described in a companion paper (Tetko IV, Villa AEP. A pattern grouping algorithm for analysis of spatiotemporal patterns in neuronal spike trains. 2. Application to simultaneous single unit recordings. J Neurosci Method 2000; accompanying article).