Pick up the book Control Unleashed. That has helped quite a few people with reactive dogs.
What I typically do is click the dog for looking at other dogs (echoing what Caro said about letting the dog see first because not seeing I think does increase the anxiety), but I do this "below threshold" when the dog can still hear you and isn't reacting by barking or lunging and isn't so focused on the other dog yet. The idea is to slowly desensitize and counter condition your dog to the sight of other dogs on leash.
The distance between your dog and the other dog may be great, but don't worry. Over time this will shorten. I had the same leash reactivity problem with Romeo but now he lets dogs pass right next to him (and even lets them sniff his butt) without reacting and looking at me instead. It took a while though!