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The deceased have been identified as Jagdish (55) and Shersingh (45) of Pagauna village, they said.
Meanwhile, Uttar Pradesh Chief Minister Yogi Adityanath took a serious view of the incident and directed senior officials to take strict action against the culprit and submit a detailed report.
According to the police, a youth of the same village identified as Murari alias Raju had stolen some equipment belonging to the priests two days ago.
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The police said the youth hacked the two priests to death.
The youth moving around with a sword was spotted by the villagers. They caught him about 2 kms from the scene of crime, a police official said.
The youth is a drug addict. He was under the influence of drugs and in a naked state when caught by the villagers, he added.