What should I do to renew my expiring i94 though I have valid H1 till next year.

First, you need to alert your H-1B employer that your I-94 is expiring as they may not be aware that your latest entry resulted in a shorter I-94 expiration date. Then, let the employer and its immigration counsel handle the extension process as it is the employer petition process and not yours individually. Check the I-94s for any family members as well to see if they need extending. Going forward, when you travel/re-enter you should show the inspector at the port of entry your most recent H-1B approval notice so that they issue the I-94 to that expiration date and not the expiration date of the visa stamp.

Go back to the port of entry and show the officer the I-797, many will simply issue a corrected I-94. Good luck!

You have three options, one you can try with CBP at airport; seond file another extension for H-1B, third fly to consulate get it stamped and enter with new dates.

Have it corrected at local CBP office.