This paper proposes a string edit distance based test selection method to generate compact test sets for telecommunications software. Following the results of previous research, a trace in a test set is considered to be redundant if its edit distance from others is less than a given parameter. The algorithm first determines the minimum cardinality of the target test set inaccordance with the provided parameter, then it selects the test set with the highest sum of internal edit distances. The selection problem is reduced to an assignment problem in bipartite graphs.