Orthogonal frequency-division multiplexing (OFDM) combines the advantages of high performance and relatively low implementation complexity. However, for reliable coherent detection of the input signal, the OFDM receiver needs accurate channel information. When the channel exhibits fast time variation as it is the case with several recent OFDM-based mobile broadband wireless standards (e.g., WiMAX, LTE, DVB-H), channel estimation at the receiver becomes quite challenging for two main reasons: 1) the receiver needs to perform this estimation more frequently and 2) channel time-variations introduce intercarrier interference among the OFDM subcarriers which can degrade the performance of conventional channel estimation algorithms significantly. In this paper, we propose a new pilot-aided algorithm for the estimation of fast time-varying channels in OFDM transmission. Unlike many existing OFDM channel estimation algorithms in the literature, we propose to perform channel estimation in the frequency domain, to exploit the structure of the channel response (such as frequency and time correlations and bandedness), optimize the pilot group size and perform most of the computations offline resulting in high performance at substantial complexity reductions.