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My name is ***** ***** I have been a Vet tech for 30+ years.
Can you tell me the color of the discharge?
Is the dog having any problems urinating?
Is he licking his penis a lot?
I believe what you are seeing is called Smega. This is the dead skin and dirt that accumulates within the sheath and it works itself in male dogs. If he was licking excessively or problems urinating I would be concerned, but under the circumsatnces, he should be ok, other than what you are seeing.: http://www.chelseadogs.com/blog/smegma-101/