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The measure of atmospheric model performance is highly dependent on the quality of the observations used in the evaluation process. In the particular case of operational forecast centers, large-scale datasets must be made available in a timely manner for continuous assessment of model results. Numerical models and surface observations usually work at distinct spatial scales (i.e., areal average in a regular grid versus point measurements), making direct comparison difficult. Alternatively, interpolation methods are employed for mapping observational data to regular grids and vice versa. A new technique (hereafter called MERGE) to combine Tropical Rainfall Measuring Mission (TRMM) satellite precipitation estimates with surface observations over the South American continent is proposed and its performance is evaluated for the 2007 summer and winter seasons. Two different approaches for the evaluation of the performance of this product against observations were tested: a cross-validation subsampling of the entire continent and another subsampling of only areas with sparse observations. Results show that over areas with a high density of observations, the MERGE technique’s performance is equivalent to that of simply averaging the stations within the grid boxes. However, over areas with sparse observations, MERGE shows superior results. [ABSTRACT FROM AUTHOR]