This paper presents an algorithm to optimally aggregate spatially distributed flexible resources at strategic microgrid/smart-grid locations. The aggregation reduces a distribution network having thousands of nodes to an equivalent network with a few aggregated nodes, thereby enabling distribution system operators (DSOs) to make faster operational decisions. Moreover, the aggregation enables flexibility from small distributed flexible resources to be traded to different power and energy markets. A hierarchical control architecture comprising a combination of centralized and decentralized control approaches is proposed to practically deploy the aggregated flexibility. The proposed method serves as a great operational tool for DSOs to decide the exact amount of required flexibilities from different network section(s) for solving grid constraint violations. The effectiveness of the proposed method is demonstrated through simulation of three operational scenarios in a real low voltage distribution system having high penetrations of electric vehicles and heat pumps. The simulation results demonstrated that the aggregation helps DSOs not only in taking faster operational decisions, but also in effectively utilizing the available flexibility.