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Sathish, who won men's singles title at India International and had a runner-up finish at Maldives International this season, prevailed over Ayush in an exciting final.
Cricketer Mohammed Shami has also been nominated for the Arjuna.
The world No. 32 Indian pair went down fighting to third seeds Rin Iwanaga and Kie Nakanishi of Japan in a 77-minute clash.
The 21-year-old Priyanshu toiled hard for one hour and 14 minutes before losing 21-18 14-21 17-21.
Tanisha Crasto and Ashwini Ponnappa, who had clinched the Nates International Challenge and Abu Dhabi Masters Super 100 this year, secured a win over Commonwealth Games bronze medallists Treesa Jolly and Gayatri Gopichand.
Orleans Masters winner Priyanshu Rajawat, Denmark Masters winner Kiran George and Sathish Kumar Karunakaran entered the second round with fine victories.
The world No.1 pair of Liang Wei Keng and Wang dashed the Indian duo's hopes of claiming a second BWF Super 750 title.
Albin Joseph had gone to the CUSAT after he was invited by his friends.
The top seeds will face another Chinese pair in the summit clash.
H S Prannoy's campaign ended after he lost to Japan's Kodai Naraoka 9-21, 14-21 in the men's singles quarterfinal.