When is the diagonal contractible?

For a smooth projective complex variety $X$, we prove that there exists a birational morphism $X\times X\to Y$ to a projective variety $Y$ contracting the diagonal ${\mathrm{\Delta }}_X\subset X\times X$ to a point if and only if $X$ has maximal Albanese dimension and irregularity $q\ge 2\dim X$. We also give necessary and sufficient conditions for arbitrary contractions of the diagonal and for the existence of a birational morphism which is an isomorphism outside the diagonal.