Hyperspectral sensors collect hundreds of narrow and contiguously spaced spectral bands of data. Such sensors provide fully registered high resolution spatial and spectral images that are invaluable in discriminating between man-made objects and natural clutter backgrounds. The price paid for this high resolution data is extremely large data sets, several hundred of Mbytes for a single scene, that make storage and transmission difficult, thus requiring fast onboard processing techniques to reduce the data being transmitted. Attempts to apply traditional maximum likelihood detection techniques for in-flight processing of these massive amounts of hyperspectral data suffer from two limitations: first, they neglect the spatial correlation of the clutter by treating it as spatially white noise; second, their computational cost renders them prohibitive without significant data reduction like by grouping the spectral bands into clusters, with a consequent loss of spectral resolution. This paper presents a maximum likelihood detector that successfully confronts both problems: rather than ignoring the spatial and spectral correlations, our detector exploits them to its advantage; and it is computationally expedient, its complexity increasing only linearly with the number of spectral bands available. Our approach is based on a Gauss-Markov random field (GMRF) modeling of the clutter, which has the advantage of providing a direct parameterization of the inverse of the clutter covariance, the quantity of interest in the test statistic. We discuss in detail two alternative GMRF detectors: one based on a binary hypothesis approach, and the other on a "single" hypothesis formulation. We analyze extensively with real hyperspectral imagery data (HYDICE and SEBASS) the performance of the detectors, comparing them to a benchmark detector, the RX-algorithm. Our results show that the GMRF "single" hypothesis detector outperforms significantly in computational cost the RX-algorithm, while delivering noticeable detection performance improvement.