The first thing you should definitely not do is start screaming as the dog approaches. This is going to get both dogs more excited and more likely for a loud greeting to turn nasty. You need to stay calm which will help your dog stay calm and react more appropriately to the other dog.
I know my dog well and would not hesitate to release him in a situation like this, but he's also a 90 lb pitt mastiff mix (super friendly) so I wouldn't worry too much about him.
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