How to efficiently use sparse function for assembling huge matrices

Hello, I am having a trouble obtaining the stiffness matrix for a mechanical system I am solving using Mesh-Free method. The global stiffness matrix has a size of about (N x N = 100000 x 100000). I am assembling it using a sparse() function such that:

K = sparse(I,J,k,N,N)

where K is the global matrix, I,J,k are very long vectors (about 7.4943e+9 x 1). I am always getting the error message

 Out of memory. Type HELP MEMORY for your options.

When I reduce the size of the problem, it works but takes very long time. Is there a more efficient and faster way to use the sparse function or to perform its work?

[Walter Roberson]

How much memory do you have? Those arrays appear to be a bit over 8 Gigabytes each.