Wow I didn't know that thanks for the info on that may come in handy in future, Pretty cool,
Also I hope you dog is ok AmyG89 let us know ok???
I know your dog has been neutered (please don't be disturbed by what I'm going to say as it is a little...er...delicate)....but male dogs CAN still be sexually active even when neutered. (although, obviously, not fertile)
Male dogs have a kind of 'knot' high up on the penis which becomes noticeable when aroused. The purpose of this, I believe, is to ensure that when mating, the penis remains firmly 'locked' inside the female's vagina (that is one of the reasons for the 'tie' made between male and female during mating.)
I am just wondering if it could have been this that you felt?
Anyway, I can't see what you mean by this 'lump', so the best thing is to be on the safe side, and take your dog in to be checked, nevertheless.