A method for non-invasively resolving electrophysiological activity in sub-cortical structures located deep in the brain by comparing amplitude-insensitive M/EEG field patterns arising from activity in subcortical and cortical sources under physiologically relevant sparse constraints is disclosed. The method includes a sparse inverse solution for M/EEG subcortical source modeling. Specifically, the method employs a subspace-pursuit algorithm rooted in compressive sampling theory, performs a hierarchical search for sparse subcortical and cortical sources underlying the measurement, and estimates millisecond-scale currents in these sources to explain the data. The method can be used to recover thalamic and brainstem contributions to non-invasive M/EEG data, and to enable non-invasive study of fast timescale dynamical and network phenomena involving widespread regions across the human brain.