Does the splined shaft on the top of the lower unit freely spin a full 360 degrees? If that's the case, then you'll have to dig further, as that means someone has pulled that shaft out of the unit at some point. The spring loaded plunger inside the propshaft will push the cam out of the way if the shift shaft is pulled out of the lower unit. It is impossible to put the shaft back in with the lower unit together and it must be pulled apart to put the shaft back in.
If the splined shaft (shift shaft) does NOT spin a full 360, then you need to put some torque on it to turn it against that spring in the propshaft, mentioned previously. It's a hefty spring and takes some beef to push the cam & pin against it. As Tex mentioned, use pliers or Vice grips, taking care to avoid marking the splines, to turn the shaft against the spring tension.